Management Should Not Use the Statement of Cash Flows for Which

question 47

Multiple Choice

Management should not use the statement of cash flows for which of the following purposes?

• A)To determine dividend policy
• B)To determine cash flow from operations
• C)To determine cash flow from investing activities
• D)To determine cash flow from financing activities
• E)To determine the balance in accounts receivable

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Definitions:

Salary Allowances

Pre-determined sums paid to employees over their regular salary, allocated for specific purposes such as transportation, housing, or meals.

Income Distribution

The process by which earned income is distributed among various stakeholders, including dividends to shareholders and payments to other entities.

Capital Balances

The amount of money that owners have invested in a company plus retained earnings or minus any losses.